GAMCO’s Mario Gabelli has decided to welcome back Caribou Coffee Company Inc. (CBOU) into his portfolio, purchasing 1.98 percent of the company’s outstanding shares, which is a total of 401,974 shares, at an average price of $16.

On Monday, Minneapolis-based Caribou announced its agreement to be acquired by private investment firm Joh. A. Benckiser (JAB), a transaction that will cost about $340 million, or $16.00 per share.

As reported by New York Times, Caribou is the second coffee shop JAB acquired this year, Peet’s Coffee & Tea Inc. (PEET) being the first. JAB also maintains position in cosmetics brand Coty, women designer shoe label Jimmy Choo and consumer goods company Reckitt Benckiser.

Caribou is a small-cap company that has delivered 14.6 percent in market value, year to date, almost as good as coffee titan Starbucks (NASDAQ:SBUX), whose market price has appreciated 18.26 percent this year. Caribou’s now fellow JAB-backed brand, Peet’s Coffee, went up 17.2 percent year to date.

Based on the number of coffee houses, Caribou is the second largest company-operated premium coffeehouse in the U.S. Its three operating segments are retail coffeehouses, commercial and franchise.

“Caribou has a fantastic brand and unique culture, and fits perfectly with JAB’s investment philosophy of investing in premium and unique brands in attractive growth categories like coffee,” said Bart Becht, JAB Group chairman. “JAB is committed to investing in Caribou as a standalone business out of Minneapolis to ensure the Company continues its current highly successful track record.”

Gabelli initially acquired Caribou in the third quarter of 2010, with 17,000 shares. The holding didn’t last long; Gabelli sold out of the stock in the following quarter – a quick bet. At the time, he purchased the stock at an average price of $9.84.

About the author:

Dianne Tordillo

Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC.
Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.